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Email this7:18 pm
October 10, 2013
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I have some questions regarding TFSA;
1. My wife became a PR in Dec 2012. However, when I see her TFSA room on CRA website, it shows it to be $31,000. Do you guys think it is an error? Because she became resident in 2012 only, so her room should be 5K+5.5K+5.5K = 16K.
My limit is also 31,000 and I have already put that money in People's Trust.
2. My brother has immigrated to Canada on a WP few weeks ago. I assume he can also open TFSA and does not has to wait 1 year (like we do for RRSPs). What would be his limit, just 5.5K for this year?
Thanks,
Adi
8:27 pm
December 23, 2011
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Look here first.
http://www.cra-arc.gc.ca/tx/nd.....l-eng.html
Looks like if you have a SIN you can contribute. But I have also seen rules if you leave the country.
8:36 pm
December 23, 2011
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Also keep in mind you are responsible to keep track of your deposits and withdrawals and to know the rules of re contributing a withdrawal plus interest. And also your "My Account" is not updated till sometime after the end of February each year. So if you look at it today it will likely NOT show your 2013 deposits yet. My account was incorrect for over a year with missing deposits and showing an obvious incorrect "eligible to deposit" amount.
5:08 am
April 6, 2013
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With a SIN, one can open a TFSA and contribute. But, not without consequences. This is from the CRA page kanaka mentioned:
A person determined to be a non-resident of Canada for income tax purposes can hold a valid SIN and be allowed to open a TFSA, however, any contributions made while a non-resident will be subject to a 1% tax for each month the contribution stays in the account.
That same page says the following:
• no TFSA contribution room will accrue for any year throughout which you are a non-resident of Canada.
That is confirmed by the following from CRA (TFSA): Contributions:
Starting in 2009, TFSA contribution room accumulates every year, if at any time in the calendar year you are 18 years of age or older, have a valid Canadian social insurance number and are a resident of Canada.
2:13 pm
December 12, 2009
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hello2adi said
I have some questions regarding TFSA;
1. My wife became a PR in Dec 2012. However, when I see her TFSA room on CRA website, it shows it to be $31,000. Do you guys think it is an error? Because she became resident in 2012 only, so her room should be 5K+5.5K+5.5K = 16K.
My limit is also 31,000 and I have already put that money in People's Trust.2. My brother has immigrated to Canada on a WP few weeks ago. I assume he can also open TFSA and does not has to wait 1 year (like we do for RRSPs). What would be his limit, just 5.5K for this year?
Thanks,
Adi
Your wife's contribution room for her TFSA definitely sounds like an error, if she became a permanent resident in 2012, I'd think she'd only have between $10,000 and $15,000 room to contribute (including 2014). That said, when did start her permanent residency application and maybe the CRA takes into account your "residency for tax purposes" in Canada? That is, if she's a taxpaying resident of Canada, although she may not be able to create a TFSA until she's actually a permanent resident/citizen of Canada, perhaps her TFSA contribution room does accrue?
I'd definitely phone the CRA and get this clarified. Even if their website seems to have the answers, it's often ambiguous. I'd want it confirmed by the CRA on a call they record. 
Cheers,
Doug
2:17 pm
December 12, 2009
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Norman1 said
With a SIN, one can open a TFSA and contribute. But, not without consequences. This is from the CRA page kanaka mentioned:
A person determined to be a non-resident of Canada for income tax purposes can hold a valid SIN and be allowed to open a TFSA, however, any contributions made while a non-resident will be subject to a 1% tax for each month the contribution stays in the account.
That same page says the following:
• no TFSA contribution room will accrue for any year throughout which you are a non-resident of Canada.
That is confirmed by the following from CRA (TFSA): Contributions:
Starting in 2009, TFSA contribution room accumulates every year, if at any time in the calendar year you are 18 years of age or older, have a valid Canadian social insurance number and are a resident of Canada.
That last quotation seems to indicate what I suggested above. So, we seem to have our answer: although you cannot contribute to a TFSA as a non-permanent resident/citizen of Canada, your TFSA contribution room does seem to accumulate from the time you are a "resident for tax purposes" with a "valid SIN" 18 years of age and older, regardless of whether you're a permanent resident/citizen yet. That's good to know, especially since citizenship/PR applications are a multi-year process and you should accrue TFSA contribution room while you're working in Canada, paying taxes, waiting for your PR/citizenship status and waiting to actually contribute.
I'd still encourage the OP to get this confirmed by the CRA over the phone, but it definitely looks good.
Cheers,
Doug
6:56 pm
December 23, 2011
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Or visit your local MP's office. They do help.
4:25 pm
April 8, 2014
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I immigrated last year and I also get 31000 contribution room showing on CRA website my account. it is really an error?
4:38 pm
December 23, 2011
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Wow, welcome to Canada! I imagine if you are legally entitled you could pick up the full entitlement. No doubt you know you exact immigration status, why not call CRA or your MPs office.
8:13 pm
October 21, 2013
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I would say it's an error. Eventually they will figure it out, and that would retroactively mess up your financial planning.
10:35 am
January 3, 2013
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Hi there,
This is NOT an error and basically it is calculated from the date she became a resident of Canada (NOT a PR just a resident for TAX purposes).
If she was in Canada since 2009 and she filed Income Tax in 2009, the 31K contribution is correct. But if she was NOT in Canada since 2009 this is a mistake.
And to make sure and get the correct answer the best people to contact would be CRA themselves.
Good Luck,
Yas
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